Investment strategies

Whatever your goals, the right investments can help you reach them. Choose from a range of investment solutions designed to help you grow your wealth and achieve financial security.
There are a variety of advanced investment strategies which can really make a difference to your funds. Here are some common strategies we can help you with, however it is best to talk to us directly for more detailed advice.
 

Superannuation

Contributing to your super is one of the most tax-effective ways to invest. Taking charge of your super and getting the right investment mix can really make a difference.

Dollar cost averaging

Put simply, dollar cost averaging is where you continue to buy something, whether the market value of that 'something' is at its highest or lowest cost. You don't wait for the 'right time'. The idea is that as you continue to invest regularly over time, this will tend to 'average' the cost of your investment.

Income splitting

This is a technique commonly used to reduce income tax. It is an arrangement whereby you set up the investment in the name of the person with the lower marginal tax rate (usually on a lower income). If this is not done at the start and you transfer the investment later, then you may trigger capital gains tax.

Gearing

There are several types of gearing (borrowing to invest) and these include:

  • Negative gearing - your investment income is less than your interest costs
  • Neutral gearing  - your investment income is equal to your interest costs
  • Positive gearing - your investment income is greater than your interest costs.

Positive or neutral gearing may not reduce your tax bill, but adopting it might put you in a better financial position. Even after you've paid tax, you could be in a better position than if you had negatively geared the investment and received the tax deduction.
There are risks associated with gearing and it is not a strategy for everyone. It is usually used by moderately aggressive to aggressive investors.

Mortgage & debt consolidation

  • This strategy looks at approaches that can potentially:
  • Help you manage your cash flow
  • Reduce your interest costs
  • Reduce the length of your loan
  • Allow you to invest to grow your assets.
You may be able to achieve one or more of the above by looking at the debts you have and working out:
  • Are these debts deductible or non-deductible?
  • Are the assets purchased with these borrowings appreciating or depreciating and can this be changed?
  • We recommend that you speak to one of our financial advisors to identify how you can best achieve these goals.

 

Before you take on any risk through investment, you need to know more about yourself, and what type of investor you are. We recommend you talk to us today, and let us help you discover your investment style, and what strategies will work best for you.